Home » Law and Legal Articles » Homeowner's Delight: Chapter 13 Bankruptcy Can Stop Foreclosure
Homeowner's Delight: Chapter 13 Bankruptcy Can Stop Foreclosure
Filing for Chapter 13 bankruptcy will stop harassing creditors from calling you at work and home, can help reduce your unsecured debts, and in some cases it may even save your home.
September 11, 2011 /Law and Legal PR News/ -- Homeowner's Delight: Chapter 13 Bankruptcy Can Stop Foreclosure
It can be difficult for individuals or couples to openly discuss their financial troubles with an attorney. However, for those considering bankruptcy, nothing could be more important or beneficial.
Filing for bankruptcy will stop harassing creditors from calling you at work and home, can help reduce your unsecured debts, and in some cases it may even save your home. For example, if someone is eligible for a Chapter 13 bankruptcy repayment plan, an automatic stay on any collection efforts, including mortgage payments, begins immediately after filing a petition.
Advantages of Chapter 13 Bankruptcy
Chapter 7 bankruptcy is the most common type of individual bankruptcy filings. Under this plan, a person or family must liquidate their assets -- less allowable exemptions -- to pay off their creditors. Unfortunately, many homes are lost through this process leaving many families devastated.
Chapter 13 bankruptcy, however, offers the chance to save a home from foreclosure by setting up a 3-5 year repayment plan which eventually cures delinquent payments. Additionally, secured debts can be spread out over the course of the Chapter 13 plan which can lower the scheduled payments to a more affordable amount.
Finally, many believe the best benefit of filing Chapter 13 is the aforementioned automatic stay. All collection calls cease and creditors can be punished harshly by the bankruptcy court is they violate the stay. This essentially gives homeowners a grace period during which they may set up a repayment plan with their bankruptcy attorney and save their home.
Eligibility for Chapter 13 Bankruptcy
Chapter 13 bankruptcy is not available to everyone. An experienced bankruptcy attorney will explain its requirements and whether Chapter 13 is appropriate for a particular situation. According to the U.S. Courts website, some requirements include:
-Unsecured debts amounting to less than $360,475
-Secured debts totally less than $1,081,400
-No dismissal of a bankruptcy petition in the preceding 180 days due to the fault of the debtor
-The debtor must have employment or a regular source of income sufficient to make the scheduled payments in addition to their living expenses
Choosing whether bankruptcy is appropriate, as well as what type of bankruptcy to file, is a decision to be made with an experienced attorney. Filing a petition, determining the value and amount of assets to declare, as well as creating an acceptable repayment plan can be a daunting task. Luckily, professionals are available to make this process understandable for those unfamiliar with the process.
Article provided by Robert I. Cohen
Visit us at www.denverbankruptcylaw.com
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